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08.01.2021

Boeing will pay $2.5 billion in settlement

Boeing will pay $2.5 billion in settlement

The company had previously already set aside money to pay airlines and $100 million for victims' families

Stocks impacted: Boeing (BA)

Boeing has agreed to pay more than $2.5 billion in penalties and compensation to settle criminal charges filed by federal prosecutors that it repeatedly concealed and lied about the 737 Max's engineering problems that led to two catastrophic crashes. The settlement includes a fine of $243.6 million, compensation to airlines of $1.77 billion, and a $500 million crash-victim fund. Boeing had previously already set aside money to pay airlines and $100 million for victims' families. Because of the crashes, the U.S. Congress in December passed legislation reforming how the FAA certifies new airplanes. Under the deal, the Justice Department would defer any criminal prosecution of Boeing for three years and charges will be dismissed if it sees no more misdeeds by the company.

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